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Date of Issue: June 14, 2007

St. Joe halts Perico Island condo sales

Mother Economy has done what lawsuits and legal actions could not.

The St. Joe Company has announced it was "suspending further sales of its Seven Shores condominium units on Perico Island” after a disappointing 18 months of sales in which only nine units had been reserved. The company had said it needed 20 pre-sales before vertical construction would be scheduled to start.

St. Joe president for Northeast/Central Florida Nick Cassala said the suspension of sales is only temporary while the company conducts a "market research update."

Site development at Seven Shores will continue, Cassala said.

"Fortunately, we are at a point in time that allows us to pause and initiate new research," he said.

Cassala did not indicate when St. Joe might resume sales, but with Island condominium sales in a market correction, the company isn't likely to reopen its sales offices until it believes there is a demand for its unit pricing or it decides to adjust its prices. The lowest-priced unit at Seven Shores was selling for around $650,000.

At the same time, the average sale price of Island condominiums has dropped from a high of nearly $600,000 two years ago to approximately $450,000 at present.

When completed, Seven Shores is planned to have 684 units in 12 mid-rise buildings on Perico Island.